Toys "R" Us Inc., which bought FAO Schwarz in 2009, said it will close its iconic FAO Schwarz Fifth Avenue location on July 15 to realize "meaningful" rent savings. The company said it was able to negotiate an early exit before the original 2017 lease expiration. FAO Schwarz, which dates from 1862, has been in that location for 29 years. Toys "R" Us, which has struggled to turn around its U.S. business as comparable sales fell for a fourth year, also is set to close its Times Square location when the lease expires in January. The company said it's committed to having both brands in Manhattan. It said Friday it's actively seeking a location in midtown Manhattan for FAO Schwarz. See related story.
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